At the close of play, Steve Smith and Marnus Labuschagne were batting on 29 and 47 respectively in their second innings.
Responding to Australia's first-innings total of 338 all out, India were dismissed for 244 to give the home side a substantial lead of 94 runs going into their second essay at the Sydney Cricket Ground.
Pat Cummins was the most successful Australia bowlers, returning impressive figures of 4/29, and Josh Hazlewood ended with 2/43, while Shubman Gill and Cheteshwar Pujara scored a 50 each for the visitors.
Brief scores: Australia 338 and 103/2 in 29 overs (Smith 29 batting, Labuschagne 47 batting)
India 1st innings: 244 all out in 100.4 overs (Shubman Gill 50, Cheteshwar Pujara 50; Pat Cummins 4/29).